China E-Commerce Market Size and Share Outlook - Forecast Trends and Growth Analysis Report (2024-2032)

China E-Commerce Market Growth

China is considered the largest e-commerce market on a global scale as it accounts for more than 50% of all online transactions. The presence of a vast population, and high internet penetration, is further fuelling the growth of China e-commerce market. E-commerce activities are gaining prominence in the rural areas of China, supporting the growth of the market. According to the Chinese Ministry of Commerce, in H1 2023, the online retail sales in rural areas increased by 12.5%, compared to the same period in 2022.

Beauty and personal care are gaining popularity as consumers prioritise skin health and are willing to invest in high-quality skincare items. The presence of platforms such as Tmall, JD.com, and WeChat has made it convenient for Chinese consumers to gain access to wide variety of beauty products from both local and international brands.

As per the China e-commerce market analysis, the government has several regulatory bodies like the State Administration for Market Regulation (SAMR) and the Ministry of Commerce, that aim to nurture innovation and growth in e-commerce while mitigating risks. The government of China has laid out several initiatives such as the Digital China strategy, cross-border trade policies, and the 14th Five-Year Plan encouraging e-commerce.

Key Trends and Recent Developments

Increasing internet users, rollout of 5G technology, and growing disposable income are increasing the China e-commerce market value.

September 2024

China-based e-commerce giant Alibaba's domestic platforms Taobao and Tmall announced that they would be accepting payments from Tencent's WeChat pay. Earlier, the company only accepted payments from Ant Group's Alipay, which was WeChat's primary rival in the Chinese market. The move was expected to expand Alibaba’s e-commerce market in the long run.

August 2023

Chinese social media platform TikTok launched a program in August to help Chinese merchants sell their products globally. The official roll out exclusively included US customers only. Replicating the success of Shein and Temu, Tiktok provided a range of services, from storage to shipping helping Chinese merchants capture the country’s market with ease.

September 2022

Chinese company Pinduoduo launched its online shopping website, Temu, in an attempt to expand its market overseas. The site sold products in several categories including clothing, jewelry, pet supplies and home and garden, posing a serious challenge to the multi-national American e-commerce giant Amazon. During the launch, shipping was free to US consumers for orders above USD 49; however, the time it took extended to 7-15 days.

February 2022

Alibaba launched a new online e-commerce platform, Maoxiang, especially for consumer electronic products, operating under the direct sales model similar to its rival JD. Industry reports suggested that the platform branded merchandise directly to consumers, exercising increased control over sourcing, quality, storage, delivery, and after-sales.

Increasing Internet Users Leading to the China E-commerce Market Expansion

China has the largest number of internet users globally, which according to industry reports, surpassed the 1 billion-mark in 2024. This is facilitating the use of ecommerce platforms among residents, leading to an expansion of the overall e-commerce market. Besides, the usage of internet is also steadily expanding to rural and remote areas, creating new market opportunities for domestic as well as international online shopping sites.

Rollout of 5G Services is Creating New China E-commerce Market Opportunities

The rollout of 5G technology across China is a significant catalyst for the country's e-commerce growth. According to the nation’s Ministry of Industry and Information Technology, China had surpassed 4.04 million 5G base stations as of the August 2024. This has increased the number of 5G subscribers in the country who are witnessing high internet speeds and a smoother online shopping experience.

Rising Disposable Income is Increasing the China E-commerce Market Revenue

China’s growing disposable income has increased the purchasing power of people, especially of the middle-class residents, fuelling the sales in the e-commerce market. As per official reports, the country’s per capita disposable income was 39,218 yuan in 2023 and has been continuously growing since due to rising employment levels and the emergence of new startups. This is further expected to raise the revenue of the market in the long run.

Expanding Retail Sector is Encouraging the China E-commerce Market Development

The expansion of China's retail sector, particularly through the integration of online channels, has significantly boosted the country's e-commerce growth. In September 2024, the retail sales in the country registered an annual growth of 3.2%, following a 2.1% year-on-year growth in August 2024. This has encouraged traditional retailers embracie third-party e-commerce platforms or build their own to supplement their brick-and-mortar operations, leading to the overall market development.

China E-Commerce Industry Segmentation

“China E-Commerce Market Report and Forecast 2024-2032” offers a detailed analysis of the market based on the following segments:

Market Breakup by Type

• Business to Consumer (B2C)
• Business to Business (B2B)

Market Breakup by Industry

• Beauty and Personal Care
• Fashion and Apparel
• Consumer Electronics
• Food and Beverage
• Health and Wellness
• Home Decor
• Household Consumables
• Others

China E-Commerce Market Share

In 2022, the Chinese cross-border e-commerce market exceeded USD 300 billion, reaching 2.1 trillion yuan (approximately USD 280.55 billion) in trade value, marking a 7.1% increase from the previous year. This growth was driven by a surge in import-export volumes, which solidified China's position as a global leader in cross-border e-commerce. The market's expansion was facilitated by government initiatives aimed at fostering a favourable environment for cross-border e-commerce, including the optimisation of comprehensive pilot zones and advancements in the 'Silk Road e-commerce' under the Belt and Road Initiative.

Leading Companies in China E-Commerce Market

Market players are focusing on optimising supply chain operations by adopting advanced technology such as AI and big data analytics to improve customer experience in cross-border transactions.

• Alibaba Group Holding Ltd
• JD.com Inc.
• PDD Holdings Inc.
• Suning.Com Co. Ltd
• Vipshop Holdings Limited 
• Mogu Inc.
• Walmart Inc
• Dangdang Inc
• JUMEI.com
• Kaola
• Others